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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (37896)	3/19/2000 11:23:00 PM
From: Dave Gore	Read Replies (2) \| Respond to of 150070

AN ABSOLUTE MUST-READ ON MARKET MAKERS plus MM's view most daytraders as suckers who play right into their hands. Note: this is not intended for those of you who strictly play momos, but an almost sure fire strategy to score it big on stocks that are solid companies who are undervalued. Want to have as shot at making up to 5,000% returns, then read on! Either you will believe this or you don't...you decide for yourself! Check out the bolded areas. THIS IS THE BEST ARGUMENT YET TO HOLD QUALITY STOCKS LONG TERM... PATIENCE, PATIENCE, PATIENCE! HOLDING LONG works with quality companies (examples that I witnessed first hand): WLGS 20 cents to $7.00 (3,000% in 1year+) TLTG $1.00 t0 $16 (1,600% return in less than 1 year) NUKE 11 cents to $5.50 (5,000% in 1 year+) WINR 46 cents to $6.00 (1,200% in 3 months) SYCD 22 cents to $3.50+ (1,400% in 8 months or so) Mark my words, the next big winners are likely to be stocks like JBRD, AVTI, and KTNV. SETO was a perfect example of manipulation by MM's. I watched it for over a year before it finally took off a bit 2 weeks ago (up 600%). The other 3 have been manipulated for almost the same time. They are due, imo. Copyright from Analyst Group.com: "MMs can not relate to long-term holders in the OTC BB. That makes absolutely no sense what so ever. They feel a large percentage of trades in the OTC BB market consist of short-term or day-trades, MMs merely view the barrage of buy and sell orders as relatively neutral to the market. How they figure it is when the average dumb money buys shares in a company, the MMs feel or rather know with some certainty it is very likely that dumb money will want to sell back those shares relatively quick on the slightest drop. Now somewhat comfortable with this logic the MMs merely short sells into the buying and attempts to take the stock down in an effort to "shake out" the weak. Since it is tough to know for sure whether a move is the beginning of a trend, or a routine shake out, this type of deception works quite well for the MMs. What the long-termers do to a stock is surprise the MMs because instead of falling the shorting has no effect and the price goes up. Now that puts the MM at selling low through shorting and thus having to buy high in order to cover. Boy, when this happens, the MMs are not very happy campers. The investors and traders are supposed to be doing that no them. Now it becomes time to pull out every trick and tactic in the book in order to attempt to get a Bear Raid at every dollar mark or percent from where the stock started. Could be a penny in smaller priced securities? What MMs do is give you a chance to make a small amount of money for your momentum and day trading style by shorting it at these levels and trying to get a bear raid each time. Each failure is compounding the MMs short position so they let it go to the next level. Now come more deliberate tactics MMs use to coerce Bear Raid or panic selling. Once the MM is caught short and the strength of the buy is overpowering the MM will want to cover his short position. So the MMs call up one of his friendly MMs and says some like "the weather is sure rough today." The MM along with the other "friendly MM initiates a down tick about the same time. Now this can also be done with a certain amount of shares such as an infamous 100 shares flag. This down tick gives the illusion of weakness designed to hopefully begin the bear raid of selling. The fickle, fearful, day trader, momentum and short term begin to sell out allowing the MM to cover his short position at lower prices. They will move it down quickly to get it to a price of least financial damage. Problem they have is long-term investors in the OTC BB. They start accumulating and buying comes flying in when they take it too far thus the MMs took it to the point of volume again and not only investors the other MMs step in the make money on the spread. Alas the poor MM does not get to cover. Now comes various tactics like stalling, boxing, or even locking the Bid and Ask for a while. Of course, MMs aggressively deny any sort of collusion designed to fix quotes or spreads, but a recent SEC investigation tells another story which they released on January 11, 1999. sec.gov; MMs have a vast resource of tactics and it would take probably more than my lifetime to figure them all out. So how do investors somehow manage to overcome the obvious deception in OTCBB arena? One answer is indirection trading style by going long which the MMs do not expect. In the war between investors and public companies on the OTC BB vs the MMs, if the MMs have all the advantages due to position or other factors, direct confrontation such as momentum or day trading hitting the stock is a definite death sentence. However, an indirect approach tends to weaken the path of least resistance before slowly overcoming it. The most effective way is long-term investors slowly accumulating and holding thus drawing the MMs out of its defenses making them as naked as their short position. This is war so this slow accumulation and holding for the long term easily achieves the desired effect to force MMs to cover and knock off the tactics or bury themselves deeper. The MMs when caught will especially use every trick and tactic in the book to get a Bear Raid thus playing on the individual fear of most people. The MMs feel they have information and position advantages over the investors as long as the holding of the stock is in weak hands or short term holders. Since they are OTC BB MMs who believe all OTCBB companies are not worth investing and management is ineffective regardless what is happening within the company. Furthermore, MMs know they are in the position to impose a great deal of influence in OTC BB stocks trading when it suits their needs. This inherent power of position enables the MMs to move the markets at any time up or down. As a result, the only way to draw them out of their favorable position is going long. Now this does not mean just an company but to effectively nail the MMs, Longs must find the great company on the floor and accumulate long before the MM tactics and games begin. This requires extensive research to find such a rare stock, but once you have found it, you are one up on the MMs so be prepared for every tactic in the book. ---------------------------------------------------------------------- Copyright 1998-2000, analystgroup.com. All rights reserved. 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